Private Equity Invests in Upscale Kitchenware Chain

Thu, 2011-09-22 16:11

If you want to know which retail sectors should do well over the coming months, follow the money. This year we've already seen private equity investors express interest in dollar stores and warehouse clubs. That's because executives at private equity firms believe those chains are due for more growth.

Now they are starting to look at the luxury market as well. Today it emerged that Investcorp, a Bahrain-based firm, agreed to buy upscale kitchenware chain Sur La Table from Freeman Spogli & Co. Sur La Table has a price point similar to or perhaps a little above Williams Sonoma, but offers more unique products and a homier store environment. Today the chain, which despite its French-sounding name started in Seattle, operates 86 stores.

Kevin Nickelberry, a managing director at Investcorp, said in a statement that Sur La Table "has multiple opportunities for growth including new store expansion and e-commerce." He could not be reached for additional comment Tuesday.